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RHB Bank

RHB Capital (RHB Banking Group) was incorporated in Malaysia as a public limited company on 24 August 1994 under the name of DCB Holdings Berhad. It assumed its present name on 16 June 1997. RHB Capital was listed on the Main Board (now known as "Main Market") of Bursa Malaysia Securities Berhad on 29 December 1994, replacing DCB Bank Berhad (now known as RHB Bank Berhad ("RHB Bank"), pursuant to a restructuring scheme undertaken in 1994. [ 2 ]

On 16 March 2005, the RHB Banking Group became the first domestic financial group in Malaysia to set up an Islamic banking subsidiary, known as RHB Islamic Bank Berhad.

In November 2012, the RHB Banking Group acquired OSK Investment Bank Berhad (OSKIB) and in April 2013, the merger between OSKIB with RHB Investment Bank (RHBIB) made RHBIB the largest investment Bank in Malaysia by assets. [ 3 ]

With the recent merger of OSKIB and RHBIB, the investment banking business is now in seven ASEAN countries and Hong Kong.

In 1996, Rashid Hussain acquires a 75% stake in Kwong Yik Bank Berhad. A year later, a merger between Kwong Yik Bank Berhad and DCB Bank Berhad formed RHB Bank, which made it as Malaysia's third largest financial services group. RHB Bank is one of the main subsidiaries under the RHB Banking Group and recently celebrates its 100th Anniversary on 15 July 2013. As of 2013, RHB Bank has over 194 branches in Malaysia, 21 branches in Singapore, 2 branches in Thailand, and 1 branch in Brunei and Vietnam.

History Edit

A wholly owned subsidiary of RHB Capital, RHB Bank Berhad is a result of three mergers –with Kwong Yik Bank Berhad, Sime Bank Berhad and Bank Utama (Malaysia) Berhad in 1997, 1999 and 2003. Its key milestones through the mergers are as follows: (i) Kwong Yik Bank Berhad was established in 1913 in Kuala Lumpur, making it Malaya's first local bank. In 1997, Kwong Yik Bank Berhad merged with DCB Bank Berhad, making it the country's biggest ever banking merger at that time. [3] (ii) The United Malayan Banking Corporation Berhad ("UMBC") was set up in 1959 and subsequently became the first commercial bank to be established in independent Malaya when it was officially declared open in 1960. In 1996, UMBC became (iii) part of Sime Darby Berhad and was renamed Sime Bank Berhad. In 1999, it merged with RHB Bank and became part of RHB Banking Group. [3] (iv) Bank Utama was incorporated in 1976. In 1998, Bank Utama merged its business operations with that of Kewangan Utama Berhad. In 2003, RHB Bank merged with Bank Utama. [3]

Milestones – 1913 to 2013 Edit

1913 : The Kwong Yik (Selangor) Banking Corporation, Limited incorporated and commenced business on 15 July 1913 at the Old Market Square.

1915 : Moved from Market Square to the corner of Jalan Bandar and Jalan Silang where it remained until 1938.

1920s & 30s : Extended credit to local traders, mainly Chinese businessmen, miners and planters, in a financial environment largely dominated by foreign banks. Despite the economic depression of the 1930s, Kwong Yik Bank played a significant role in the growing prosperity of Malaya and the demand for rubber and tin.

1938 : Moved to the Kwong Yik Bank Chambers. This remained its base until the 1960s.

1940s : Operations suspended with the Japanese Occupation and World War 2. The bank resumed business when the war ended. In 1941, deposits totalled RM5 million.

1950s : Played an integral part in the rehabilitation of the country's economy leading up to Independence. Links with overseas banks were established.

1961 : Moved to its temporary premises in Jalan Bandar while awaiting the completion of its new headquarters. By this time, customer deposits totalled RM34 million.

1993 : Kwong Yik Bank celebrated its 80th anniversary. It had 50 branches throughout the country at this juncture and 1,680 staff. To mark the occasion, the bank produced its first TV commercial.

1997 : Rashid Hussain Bhd purchased Malayan Banking's share in Kwong Yik Bank. The bank then merged with DCB Bank (formerly D&C Bank, established 1966), which has been under the RHB stable since 1993. This biggest bank merger in the country's history formed RHB Bank Berhad, then Malaysia's third largest financial services group.

1999 : Sime Bank merged with RHB Bank to become part of the RHB Banking Group. Sime Bank was set up after UMBC (United Malayan Banking Corporation, established 1960) became part of the Sime Darby Group in 1996.

2003 : Merger of RHB Bank with Bank Utama Berhad, which was first established in 1976.

2007 : The Employees Provident Fund (EPF) emerged as the single largest shareholder of RHB Capital. 30% equity in RHB Bank was purchased from Khazanah Nasional Berhad, making RHB Bank a 100% subsidiary of RHB Capital.

Islamic Banking Edit

RHB Banking Group officially received the license for its Islamic Banking subsidiary on 1 March 2005, making it the first commercial banking group in Malaysia to have its full-fledged Islamic Bank. RHB Islamic Banking offers a range of consumer, business and corporate banking services and solutions that are Shariah-based.

Global Financial Banking Edit

Global Financial Banking covers RHB Capital's offshore businesses, particularly its commercial banking operations in Singapore, Thailand, Brunei and Vietnam, as well as its non-Ringgit based funding operations in Labuan.

Group Treasury Edit

Group Treasury comprises the Treasury functions of Commercial Bank, Investment Bank and Islamic Bank. Its major activities include managing funds, hedging and investment need covering a wide range of treasury products and services.